Key Takeaways
- Trump’s 10% global import surcharge officially takes effect today, February 24, 2026, for a 150-day period despite the President’s threats to raise the rate to 15%.
- European new car registrations fell 3.9% in January, ending a six-month growth streak as consumer demand for petrol vehicles plummeted in major markets like Germany and France.
- Japan’s Prime Minister Sanae Takaichi is moving to establish a "Japanese CFIUS" to tighten economic security and screen foreign investments in sensitive sectors.
- The World Bank has secured a landmark $6 billion loan insurance policy to leverage its balance sheet and significantly boost lending to developing nations.
- Jefferies upgraded Ashmore (ASHM) to a Buy rating with a price target of 285p, citing a potential recovery in emerging market flows.
Global Trade and Tariffs
President Donald Trump’s new 10% global tariff has officially gone into effect, marking a major escalation in trade policy. The measure, authorized under Section 122 of the Trade Act, is intended to address a $1.2 trillion goods trade deficit and will remain in place for 150 days unless extended by Congress.
While the President has signaled a desire to raise the rate to 15%, U.S. Customs and Border Protection has initially implemented the 10% surcharge. Certain sectors, including energy, pharmaceuticals, and vehicles compliant with the USMCA, remain exempt to mitigate domestic inflationary pressure.
European Economic Slump
The European automotive sector faced a sharp reversal in January as new car registrations fell 3.9%, breaking a consistent growth trend. The decline was driven by a massive retreat from petrol vehicles, which saw registrations drop 49% in France and 30% in Germany.
Tesla (TSLA) continued its downward trajectory with a 17% year-on-year decline, marking its thirteenth consecutive month of falling sales in the region. In contrast, Chinese manufacturer BYD (BYDDF) saw registrations surge by 165%, while Stellantis (STLA) and Mercedes-Benz (MBG) managed to post modest gains of 6.7% and 2.8% respectively.
Geopolitical and Security Risks
In Japan, Prime Minister Sanae Takaichi has instructed her cabinet to draft legislation for a Japanese version of CFIUS. This body will be tasked with screening overseas investments in critical infrastructure and sensitive technologies to counter what Takaichi describes as "economic coercion."
Meanwhile, European military leaders have warned that the continent’s push for "tech sovereignty"—moving away from U.S. providers like Microsoft (MSFT) and Zoom (ZM)—could create significant security vulnerabilities. Simultaneously, Russian authorities have formally charged Telegram founder Pavel Durov with supporting terrorist activities, alleging the platform failed to remove extremist content and facilitated illegal data gathering.
Finance and Infrastructure
The World Bank has finalized a $6 billion insurance deal to protect its loan portfolio, a move designed to free up capital for increased lending. This financial innovation comes as global institutions face mounting pressure to fund climate transitions and poverty reduction in a high-interest-rate environment.
In the UK, rapid coastal erosion has thrown the spotlight on the £40 billion Sizewell C nuclear plant, raising concerns over the long-term viability of the site. Additionally, the UK government faces accusations of shelving a critical fraud report, leading to calls for greater transparency in how the state handles financial crime.
AI and Market Upheaval
The rapid advancement of Artificial Intelligence is causing significant volatility in the software sector, with investors on edge over a potential "SaaS Apocalypse." Wealth managers in Europe are currently fighting back against fears of obsolescence, arguing that human expertise remains vital despite the rise of AI-driven advisory tools.
Amidst this disruption, venture capital is flowing into European startups focused on building low-cost air defense systems. These firms aim to provide affordable alternatives to traditional, high-cost military hardware, reflecting a shift in defense procurement strategies across the continent.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.